This bill amends the Michigan Insurance Code of 1956, specifically section 150, to enhance the enforcement mechanisms for violations of the act. It establishes that individuals who violate provisions of the act without a specific penalty must be given a hearing opportunity before the director. If a violation is confirmed, the director can issue a cease and desist order and impose civil fines, which can reach up to $1,000 for each violation, or $5,000 if the individual was aware of the violation. Additionally, the bill allows for fines related to specific acts or omissions to be imposed alongside other penalties or restitution.

The bill also introduces a cap on civil fines, stating that no fines should exceed $50,000, and mandates that collected fines be directed to the state treasury for the general fund. It provides the director with the authority to modify or set aside orders if circumstances change and outlines penalties for knowingly violating cease and desist orders, which can include fines of up to $20,000 or license revocation. Overall, the amendments aim to strengthen regulatory oversight and ensure compliance within the insurance sector.

Statutes affected:
House Introduced Bill: 500.150
As Passed by the House: 500.150